Answer the following questions using the information below P

Answer the following questions using the information below Product ORD210 The East Company manufactures several different products. Unit costs associated with are as follows: Direct materials Direct manufacturing labor Variable manufacturing overhead 11 Fixed manufacturing overhead Sales commissions (2% of sales) Administrative salaries $54 25 12 $115 Total the total variable costs per unit associated with Product ORD105 with 21) What is the percentage of respect to total cost? A) 72% B) 68% C) 75% D)70%

Solution

Variable cost =Direct material + Direct manufacturing labor +variable manufacturing overhead +sales commission

           = 54+8+11+5

           = 78 per unit

Fixed manufacturing and administrative salaries is a fixed cost

Percentage of total variable cost per unit to total cost = 78/ 115

                   = .678 or 67.8%   [rounded to 68%]

correct option is \"B\"